A company ages its accounts receivables to determine its end of period adjustmen

Question

A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $29,250 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $825. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? Multiple Choice Bad Debts Expense 29,250 29,250 Bad Debts Expense 28,425 Allowance for Doubtful Accounts 28,425

Explanation / Answer

Bad debt expenses. DEBIT $ 30075

( $ 29250 + $ 825 )

Allowance for doubtful accounts CREDIT $ 30075

( $ 29250 + $ 825 )

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